The Presidential Compressed Natural Gas Initiative (P-CNGi), in collaboration with the National Union of Road Transport Workers (NURTW), has begun enforcing a 40% fare reduction on commercial vehicles that run on compressed natural gas (CNG), marking a significant step towards lowering the cost of public transport and encouraging the adoption of clean energy.
The announcement was made on Friday in Abuja during a public event held at the Area 1 Park in Garki to officially launch the fare reduction policy.
The initiative is part of President Bola Tinubu’s broader mandate to offer affordable and sustainable transportation solutions to Nigerians, particularly in the face of subsidy removal and rising fuel prices.
Implementation and Fare Breakdown
At the event, Mr. Michael Oluwagbemi, CEO and Programme Director of P-CNGi (represented by Mr. David Idakwo, Regional CNG Expansion Coordinator for the North), explained the strategic partnership with NURTW, which has led to the conversion of a large number of commercial vehicles to CNG.
He revealed the updated fare structure based on CNG pricing, compared to the previous rates under petrol usage:
- Area 1 to Gwagwalada: Reduced from N1,500 to N900
- Area 1 to Bwari/Dutse: Reduced from N1,500 to N900
- Area 1 to Kuje: Reduced from N1,200 to N720
- Area 1 to Galadimawa: Reduced from N500 to N300
- Area 1 to Mpape: Reduced from N1,000 to N600
- Area 1 to Zuba: Reduced from N1,500 to N900
- Area 1 to Lugbe: Reduced from N700 to N420
- Area 1 to Jabi: Reduced from N700 to N420
- Area 1 to Wuse: Reduced from N400 to N240
- Area 1 to Nyanya: Reduced from N700 to N420
- Area 1 to Kabusa: Reduced from N800 to N480
- Area 1 to Apo: Reduced from N500 to N300
“These reductions are just the beginning,” Oluwagbemi said. “We have a roadmap to expand this enforcement to more parks in Abuja and eventually scale it across the country.”
Ensuring Compliance
To enforce the new fare regime, a joint task force comprising P-CNGi officials and NURTW personnel has been activated. The task force is responsible for ensuring that only approved fares are charged. Mystery shoppers are also deployed to randomly assess compliance among drivers.
Passengers are encouraged to report non-compliant drivers via PCNGi official channels.
- According to Oluwagbemi, disciplinary action will be taken against drivers found to be overcharging commuters.
- The initiative has already converted over 50% of NURTW’s fleet in Abuja, with conversion efforts ongoing. Notably, over 70% of airport shuttle vehicles have also been converted, and fare reduction for airport routes will be announced shortly.
- The Federal Government, through P-CNGi, is also partnering with private sector investors to expand CNG refuelling infrastructure and address the bottlenecks caused by long queues at existing stations.
Mr. Ibrahim Jubril, Secretary of NURTW’s Garki Branch, commended President Tinubu for supporting ordinary Nigerians through practical economic relief. He confirmed that the union is fully committed to the fare reduction initiative.
Why This Matters
The fare reduction comes as a direct response to the economic pressures faced by commuters and is designed to cushion the effect of high transport costs. By leveraging CNG as a cheaper and cleaner alternative to petrol, the government aims to not only improve environmental outcomes but also drive down the cost of living.